Blackstone, Temasek, Bain eye major stake in Haldiram: report 

Private equity (PE) firms Blackstone Inc., Temasek Holdings Ltd, and Bain Capital are looking to buy a controlling stake in popular Indian snacks and restaurant brand Haldiram’s, Mint reported.

The investors are eyeing an up to 51% stake in Haldiram Snacks Food Pvt. Ltd (HSFPL) at a valuation of $8-10 billion, the report said.

“The deal contours are being worked out. Currently, the funds are carrying out due diligence,” the Mint report said, citing a person aware of the issue. 

If completed, the transaction would be among the largest private equity deals in the consumer sector.

Last fiscal year, PE deals had slowed to $23.88 billion, down 28% from the previous year, according to the ‘India Invests’ report by 360 ONE Wealth (formerly IIFL Wealth Management). 

The interest shown by the global equity firms in Haldiram’s follows the reorganization of the group’s business.

The Competition Commission of India (CCI) had last year approved the proposed demerger of the fast-moving consumer goods (FMCG) business of Haldiram Snacks Pvt. Ltd (HSPL) and Haldiram Foods International Pvt. Ltd (HFIPL) into Haldiram Snacks Food Pvt. Ltd (HSFPL). 

Upon completion of the demerger, the shareholders of HSPL and HFIPL will acquire 56% and 44% shareholding in HSFPL.

Owned by grandsons of Haldiram founder Ganga Bhishen Agarwal, HSPL was run from Delhi while HFIPL operated out of Nagpur.

New York-based Blackstone, which has a current holding of $30 billion in India, has been looking to expand its portfolio in the country. 

Asia private equity head Amit Dixit said last month that the asset manager would invest at least $2 billion a year in India for the next five years, Reuters reported. 

Singapore-based Temasek also expects to add another $9-10 billion to its India portfolio over the next three years, Vishesh Shrivastav, managing director, investment (India) at Temasek, told The Hindu Business Line last year.

Bain Capital is also on track to invest up to $10 billion in the country over the next 3-5 years, a top executive said earlier this year. 

With the India snacks market expected to grow at a compound annual growth rate of about 9% in 2024-2032, PE firms are now eyeing the industry to expand their investments. 

The Indian snacks market was valued at ₹42,694.9 crore ($5.11 billion) in 2023, according to a January report by research firm IMARC Group.